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The Chinese authorities summoned major electric vehicle manufacturers, including BYD, urging them to self-regulate as the ongoing price war escalates.
The Ministry of Industry and Information Technology, along with the market regulator and top economic planning agency, called for senior executives from leading EV makers—including BYD (OTCPK:BYDDF), Geely (OTCPK:GELYF), and Xiaomi (OTCPK:XIACF)—to Beijing, Bloomberg reported, citing people familiar with the matter.
The authorities urged automakers to self-regulate and avoid selling vehicles below cost or offering excessive discounts. They warned that such practices could lead to unsustainable competition, financial strain across the supply chain, and potential bankruptcies of weaker firms. The government also highlighted issues such as “zero-mileage” cars and mounting debts that are straining cash flows.
The officials expressed concerns about the long-running price war, which has intensified following BYD’s (OTCPK:BYDDF) recent price cuts of up to 34%.
The China Automobile Manufacturers Association, without mentioning BYD (OTCPK:BYDDF) , said that action taken by a particular company had sparked a fresh round of “price war panic,” sending the industry into a “vicious cycle” and endangering the supply chain. “Disorderly price wars intensify vicious competition, further compressing corporate profit margins,” the association commented.
List of Chinese EV makers include: BYD (OTCPK:BYDDF) (OTCPK:BYDDY), Nio (NYSE:NIO), Li Auto (NASDAQ:LI), XPeng (NYSE:XPEV), Xiaomi (OTCPK:XIACF) (OTCPK:XIACY), Geely (OTCPK:GELYF) (OTCPK:GELYY)